Nagaland Signs MoU for Disaster Risk Management Insurance

Nagaland has made history by signing a Memorandum of Understanding (MoU) with SBI General Insurance for the implementation of the Disaster Risk Transfer Parametric Insurance Solution (DRTPS), becoming the first Indian state to adopt such a system. The DRTPS is designed to protect critical infrastructure and mitigate economic losses from disasters over a three-year period, from 2024 to 2027. Chief Minister Neiphiu Rio emphasized that the state government will cover the insurance premiums, ensuring financial protection for citizens against disasters like floods and droughts without imposing a heavy burden on the state's finances. The initiative aims to establish a robust disaster risk management system and facilitate community-based resilience efforts. Additionally, this pioneering approach is expected to serve as a model for other states in India to replicate. The project will utilize data from ground weather stations to enhance disaster response and recovery efforts.